Can a S Corporation reimburse shareholders for actual auto expenses?

Forum|Forum|6 years ago
December 7, 2019
2 replies
36 views

For a vehicle owned personally by a S corporation shareholder, can they be reimbursed for actual auto expenses instead of using the standard mileage rate? Is reimbursing at the standard mileage rate the only way to expense vehicle costs for a S corporation that does not own the vehicle?

Lacerte Tax

This topic has been closed for replies.

Best answer by TaxGuyBill

Yes, they can reimburse using Actual Expenses. The Standard Mileage Rate is definitely easier, but Actual Expenses can be used if it gives a better result.

T

TaxGuyBillAnswer

Level 15

Yes, they can reimburse using Actual Expenses. The Standard Mileage Rate is definitely easier, but Actual Expenses can be used if it gives a better result.

C

codeblue123Author

Level 3

Could they be reimbursed for depreciation/car loan payments? What about the personal use of the vehicle?

I have a new client who had the S Corporation pay for all of their auto expenses even though they owned the vehicle personally. Can these payments the corporation paid be used as reimbursements?

abctax55

Level 15

And to clarify...there *should* be a written, accountable plan in place and the employee needs to submit the amounts for reimbursement. "Just" like would need to be done for any other employee who isn't the shareholder.

HumanKind... Be Both

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